SEC Document

The following table presents the amounts in accumulated other comprehensive income (loss) as of May 31, 2017 that have
not yet been recognized in net periodic pension cost, but will be recognized in our Consolidated Statements of Income during the fiscal year ending May 31, 2018:

(In thousands)

U.S. Plans

Non-U.S. Plans

Net actuarial loss

$

(14,325

)

$

(1,675)

Prior service (cost) credit

$

(117

)

$

25

In measuring the projected benefit obligation and net periodic pension cost for our plans, we utilize actuarial valuations.
These valuations include specific information pertaining to individual plan participants, such as salary, age and years of service, along with certain assumptions. The most significant assumptions applied include discount rates, expected return on
plan assets and rate of compensation increases. We evaluate these assumptions, at a minimum, on an annual basis, and make required changes, as applicable. In developing our expected long-term rate of return on pension plan assets, we consider

the current and expected target asset allocations of the pension portfolio, as well as historical returns and future
expectations for returns on various categories of plan assets. Expected return on assets is determined by using the weighted-average return on asset classes based on expected return for the target asset allocations of the principal asset categories
held by each plan. In determining expected return, we consider both historical performance and an estimate of future long-term rates of return. Actual experience is used to develop the assumption for compensation increases.

The following weighted-average assumptions were used to determine our year-end benefit obligations and net periodic pension
cost under the plans:

U.S. Plans

Non-U.S. Plans

Year-End Benefit Obligations

2017

2016

2017

2016

Discount rate

3.81%

3.85%

2.79%

3.13%

Rate of compensation increase

3.80%

3.80%

3.00%

2.81%

U.S. Plans

Non-U.S. Plans

Net Periodic Pension Cost

2017

2016

2015

2017

2016

2015

Discount rate

3.85%

4.25%

4.30%

3.13%

3.26%

3.82%

Expected return on plan assets

7.89%

7.90%

8.25%

4.50%

4.49%

5.18%

Rate of compensation increase

3.80%

3.80%

3.81%

2.81%

2.81%

3.30%

The following tables illustrate the weighted-average actual and target allocation of plan assets:

U.S. Plans

Target Allocation

Actual AssetAllocation

(Dollars in millions)

as of May 31, 2017

2017

2016

Equity securities

55%

$

295.2

$

234.7

Fixed income securities

25%

82.4

72.1

Cash (1)

59.7

7.1

Other

20%

0.2

0.3

Total assets

100%

$

437.5

$

314.2

Non-U.S. Plans

Target Allocation

Actual AssetAllocation

(Dollars in millions)

as of May 31, 2017

2017

2016

Equity securities

40%

$

83.8

$

71.7

Fixed income securities

41%

65.9

67.4

Cash

Property and other

19%

30.2

30.4

Total assets

100%

$

179.9

$

169.5

(1)

The cash position at May 31, 2017 results from our acceleration of the planned fiscal 2018 contribution, which was deposited into the RPM International Inc. Retirement Plan during May 2017. The cash will be
invested at various points in time during fiscal 2018.

56 RPM International Inc. and Subsidiaries

About RPM

RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands are Rust-Oleum, DAP and Zinsser.

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